The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-06-01
THE UNION PACIFIC INQUIRY.
Gov. Ames Tells of Time When Gould Ap-
peared in Happy Frame of Mind.

BosToN, May 31.-The United States Pacific
railroad investigating commission continued its
public investigation Of the affairs of the Union
Pacific railroad this forenoon. The first witness
was Judge John f.. Dillon, of New York, who
gave chronological review of the litigation in
which the Union Pacific has been involved. The
bulk Of the testimony went to show the friction
existing between the road and the government.
under tho present circumstances. He stated
that most of this litigation grew out of Section 6
of the act of 1862, modified by Section of the
act Of 1884. The witness contended that by the
act of 1873 the government has not paid the
company half the amount for transportation
which is rightfully due the road under the terms
Of the contract
Governor Ames arrived at this point, and was
sworn, Judge Dillon giving way to him. The
Governor testified that he became acquainted
with the affairs of the road when but 100 miles
oft had been built He gave history of the
extension of the road and stated that he was
not connected with the Central Branch at the
time of the roads reception. His father, Oakes
Ames, owned 666 shares and twenty seven
bonds, which afterwards came into his tOliver's)
possession. The witnesses first real connection
with the Central Branch was in 1873. The Off
GERS of the company found that the more branch
roads they built the better the Central branch
off. The witness now owns 162 shares in
branch roads. After acquiring the GOO shares
from his fathers estate. he began purchasing
shares, buying up considerable of the stock at
$50 per share, the par value. He bought some
of the stock high $l60. MIR. Gould COM
menced negotiations in September or October,
1879. He and his party were negotiating YER
bally, and none of them wrote any
letters. When the Pacific company were
building in Kansas, Mr.. Gould contended that
they were invading his territory, and he began
building parallel road, seeing that they were
getting toward Denver very rapidly. Boston
friends OF the Pacific did not like to see the
company building line against such opposition.
The witness went to Mr. Gould and explained to
him the condition and prospects of the road,
and also gave him other STATISTICS IN a written
statement made up in the Atchison Office. The
witness did not know who made the statement,
and did not revise it Mr. Gould said he would
look it over Meanwhile the witness was con-
ducting negotiations with the Chicago, Burling-
ton & Quincy and the Rock Island railroads.
The witness went to New York and had a meet
ing with Mr.. Gould, Russell Sage and others.
Mr. Gould spoke very dispsragingly of the road,
and said he did not believe much In agrl-
cultural roads, anyway Mr.. Sage told the
witness that he would take the road and give
saw MIR. Gould next morning. MIR. Gould said
ne had talked the matter over with MIR. Dillon,
and preferred to offer 5000 per share for the
stock. We had been asking $3O0 for 1t. but
eventually agreed to carry his proposition to the
directors paper was drawn up conveying 2,
900 shares OF Union Pacific stock, five eighths
of the whole. at $3.50 per share, and STIMULATING
tnat Jay Gould was to have control of the board.
ana making other stipulations. After the wit
ness and other directors signed this paper, which
they did as individuals, Mr.. Gould advised the
witness TO go to every stockholder and get them
70 ratlfy the agreement. On Nov. III, 1879, Mr..
Gould offered the witness option of 5000 for
iOOO shares and 81 20 share for 900 more. On
NOV ~ he offered to take the remaining 1,6OO
shares at $3.50, all payable in Kansas City bonds
at par. Immediately after this consum-
mated, the witness noticed that Mr.. Gould ap-
peared very happy, while tho witness never saw
a more gloomy set of than the Union Pa
cine directors; they felt that Mr. Gould had them
IN his power. The total amount paid by Mr..
uould was 81 93S 7S5. In 1876 they desired that
tne witness should sign paper, in common with
other holders of Credit Mobilier stock, agreeing
mat If the Credit Mobilier stock was turned into
Union Pacific funds, it would release all claims
OF the company for alleged receipts. This paper
tne witness refused to sign, and he was, in con-
sequence OF this refusal, dropped from the board
OF directors
Mahlon ID. Spaulding, director of the COM
pany, thought the road was able to pay the gov
srnment every cent it owed IL it was treated as
ialrly as its competitors.
AT the afternoon session Judge Dillon testified
WIN regard to the position of the Union Pacific
au ana tne government treating more especially OF
sne disputes between them on tho Omaha bridge
ana the Pullman contract His evidence bore
parucularly on the legal questions involved, and
Se quoted several decisions of the United States
Supreme Court in support of the position OF the